We are sending this Australia & New Zealand Economics Weekly one day earlier than usual because our Singapore office is closed on Good Friday, 3rd April.
The Australian government's decision to slash the fuel excise tax for the next three months will only briefly limit the rise in automotive fuel inflation. Moreover, with underlying inflation set to accelerate markedly, the RBA remains on course to tighten policy further. Otherwise, Prime Minister Anthony Albanese has sought to calm concerns about potential fuel shortages. However, the longer supply disruptions persist, the greater the risk that the government will need to implement measures to reduce fuel demand and prioritise supplies to critical sectors.
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